You can also split it into two take profit levels. Take profit level is mirrored by measuring the height of the first swing wave in a rising or falling wedge pattern. Traders ought to know the differences between the rising and falling wedge patterns in. Keep in mind, breakout candlestick must have at least 70% body (means small wick and big body). The rising wedge pattern is the opposite of the falling wedge and is observed in down trending markets. The slope of the highs must be steeper though, so that at some point it forms a. And then you will decide yourself which one option will be good. Falling wedges occur when both the slope of the lows and the highs is falling. Here you will use your common sense and calculate risk reward ratio for each case. There are two options here, either to trigger a trade just after breakout of the trend line or to wait for retracement to the Fibonacci 50 level. Stop loss can also be placed above the key level which will be a more safe option but as we also have to look for a good risk reward that’s why first one is good.

Make sure to add spread while adjusting the stop loss level. Stop loss will be above the last high made by the price before breakout of trend line in case of rising wedge chart pattern. The Rising wedge pattern is a Bearish pattern.

Now let’s talk about the stop loss, take profit and entry of trade setup. The falling wedge pattern is the opposite of the rising wedge pattern and can be applied in all technical charts. The pattern appears as an upward-sloping price chart featuring two converging trendlines. The rising wedge pattern The decrease of the trend indicates that the trend is becoming fragile over time, and the pattern will be considered a reversal pattern when it comes to view as an uptrend. If Price break the trend line without touching resistance or supply level, then it can be a false breakout to trap retail traders. The rising wedge is a technical chart pattern used to identify possible trend reversals. Like if there is forming a rising wedge pattern and there is also a strong resistance or supply level above then if Price break trend line after touching the resistance and supply level then it is a good pattern.

Rising wedge patterns